What are Consumer Loans?

Consumer loans are financial tools designed to assist individuals making purchases or covering expenses that they may not be able to afford upfront. These loans are commonly used for buying goods like furniture, appliances, vehicles, and for moving businesses, services related to relocation or storage.

The defining feature of consumer loans is their flexibility, allowing customers to pay for purchases over time through fixed installments. This enables customers to manage larger expenses within their budgetary constraints, making significant transactions more accessible and manageable.

Benefits for Customers

  1. Flexible Payment Options: Consumer loans provide customers with the flexibility to pay for moving services over an extended period, alleviating financial strain by breaking down large expenses into manageable monthly installments that align with the customer’s cash flow
  2. Strategic Financial Management: Consumer financing offers customers the opportunity to leverage favorable terms, such as 0% APR over a specified period. Even if customers have the means to pay upfront, they may choose financing to preserve liquidity and allocate funds towards other investments or expenses that yield higher returns.
  3. Increased Purchasing Power: Access to consumer financing empowers customers to make informed decisions about additional products or services that enhance their moving experience. Financing allows customers to optimize their budget and prioritize spending based on immediate needs and future financial goals. Additionally with the ability to pay over time, customers are more likely to consider adding extra services like packaging, insurance, storage to their move, etc.

Benefits for Businesses

  1. Steady Cash Flow: By offering consumer financing, moving businesses can secure immediate payment for their services while allowing customers to pay over time. This steady cash flow can enhance financial stability and operational efficiency.
  2. Competitive Advantage: Providing consumer financing sets businesses apart from competitors by catering to a broader customer base that values payment flexibility. This attracts customers who may prefer financing options and can sway decisions in favor of businesses offering such services.
  3. Customer Retention and Loyalty: Offering consumer financing fosters stronger customer relationships and encourages repeat business. Customers are more likely to return to a moving company that provides convenient financing options, enhancing overall customer retention and loyalty.
  4. Increase Job Win Rate and Size: Consumer financing can also help businesses win more jobs and larger contracts. When customers have the option to pay over time, they are more likely to engage with moving companies that offer this flexibility, leading to increased job opportunities and revenue growth.

In summary, consumer financing empowers individuals and businesses to manage expenses effectively within their financial means. For moving companies, integrating consumer loans into service offerings can lead to increased customer satisfaction, business growth, and a competitive edge in the market.

By understanding the benefits of consumer loans for both customers and businesses, moving companies can leverage these financial tools to expand their reach and better serve their clientele, ultimately fostering mutually beneficial relationships within the moving industry.

For more information or if you have questions about consumer loans and how they can benefit your business, feel free to reach out to our knowledgeable team at Remedy by calling info@remedypayments.com or calling 714-461-2200. We’re here to help!

Remedy is powered by Chosen Payments whom is a registered ISO and FSP of Wells Fargo Bank, N.A., Concord, CA and BBVA USA, Birmingham, AL., and Elavon, Inc., N.A., Atlanta, Georgia, and Evolve Bank & Trust; Memphis, TN., and Merrick Bank, N.A., Draper, UT.